Sungwon - S Korean firm eyes foray into Qatari market

SOUTH Korean construction firm Sungwon Corporation plans to participate in a number of mega infrastructure development projects in the Middle East, in particular Qatar.

Sungwon, one of the largest construction firms in South Korea, is entering the Qatari market as part of its regional growth strategy to tap the huge potential which exists in public works projects and property development in the Middle East.
 

The South Korean firm is planning joint ventures with local partners in various sectors including construction material manufacturing plants and the import and distribution of heavy machinery in addition to various tenders already submitted for infrastructure projects.

Sungwon will invest over $100mn in 2007 in hardware, equipment, labour mobilisation and land acquisition through various planned joint ventures in Qatar.
 

Announcing Sungwon’s entry into the Qatar market, the founder and chairman of Sungwon Corporation, Yoon-Soo Jeon, said: “Qatar’s successful hosting of the 15th Asian Games has created a major impact in Korea. The awareness subsequently generated on the investment opportunities by Qatari business leaders during a visit to Seoul has spurred South Korean investors to make a bee-line to Qatar.”
 

Soo Jeon said his company had been targeting Qatar for the last two years as the country with the biggest potential in the region for construction projects, especially in the field of infrastructure development.

Sungwon is now expanding the scope of its earlier commitment with a number of other projects, he added.

Sungwon regional vice president Richard Lee said: “Based on a feasibility study undertaken in Qatar, we are in the final stages of establishing joint ventures in the construction, property development and construction-related industries. We are keen to carry out public infrastructure construction in Qatar including roads, bridges, highways, sewerage pipe installation and environmental plants, to name a few.
 

“Qatar, like the rest of the Gulf, is experiencing rapid growth, both in terms of foreign direct investment and tourism. Qatar promises to be an extremely productive market in terms of infrastructure work as the government has embarked on an ambitious plan to modernise infrastructure,” Lee added.
 

Sungwon is also looking at forging strategic alliances with key local partners in the GCC region.
 

It has already earmarked over $1.2bn in investments over the next three years for the property development sector in the region. Sungwon is also carrying out civil works in other GCC nations.
 

In addition to the Middle East, Sungwon is already playing an active role in construction and property development projects in several other countries outside South Korea including Kazakhstan, South Africa, the US and other parts of southeast Asia.